Former Finance Minister, Seth Terkper, has defended recent efforts to tighten management of Ghana’s gold sector, arguing that reforms have strengthened the country’s reserves and supported the cedi.

Speaking on PM Express Business Edition, he weighed in on the growing debate over the impact of the Bank of Ghana’s losses on the wider economy.

The government's finance adviser said one of the major policy responses was a deliberate move to rebuild external reserves.

His remarks come at a time when debate over the Bank of Ghana’s financial position has intensified, with questions about whether recent losses should be viewed only through the central bank’s balance sheet or against broader macroeconomic outcomes.

For Mr Terkper, the gold reforms must be judged by their impact on reserves, currency stability and the broader effort to strengthen Ghana’s economic buffers.

“One of the things was moving quickly to strengthen the reserves, which translated into the appreciation of the cedi,” he said.

Mr Terkper said the effort was linked to changes in the way gold was marketed and managed.

“It’s the sanitisation of the marketing of gold,” he stated.

He acknowledged that the process was not perfect but insisted the intervention produced important gains.

“Yes, you couldn’t get everything right, but at the same time, we need to compliment,” he said.

According to him, the reforms brought greater order to the sector and strengthened the central bank's reserve position.

“There’s some sanitisation of that whole sector, which led to a significant increase in reserves for the central bank,” he said.

Mr Terkper also placed Ghana’s gold in a broader global economic context.

“Globally, gold is the most aggressive competitor for the dollar, before you come to the euro, yen and others,” he said.

He argued that for years Ghana had not fully benefited from the strategic value of its gold, despite its historic position as a major producer.

“Ghana is the Gold Coast,” he said.

He then made a pointed observation about the movement of Ghana’s gold beyond its borders.

“Ghana’s gold was going all the way out to other countries, which they were using to stabilise their economy, from the Middle East to Europe to everywhere,” he said.